Limit down means that the stock exchange sets a daily decline limit for stocks. That is, if a stock falls to -10% (or -5%) of the maximum limit, it is called Limit down.

Generally speaking, the stock exchange stipulates that the daily rise and fall of stocks in an A-share market is ±10%, and the daily rise and fall limit of stocks starting with S or ST is ±5%. If this Stocks rose on the day.

And if it rises to the highest limit, which is 10%, this is the daily limit. If it falls, the highest limit is -10%, which is the lower limit. If stocks starting with S or ST stop rising when they rise to +5%, this is also the daily limit, and when they fall by 5% it is the lower limit.

Extended information:

Related standards

U.S. securities regulators and stock exchange officials are about to propose a circuit breaker system applicable to all exchanges so that Halting or suspending stock trading during times of significant market volatility.

The Dow Jones Industrial Average plunged nearly 1,000 points intraday on May 6. The Dow Jones Industrial Average fell 481 points in 6 minutes that afternoon, and rebounded 502 points in the next 10 minutes. The Dow ended the day down 348 points.

Relevant media said that the U.S. Securities and Exchange Commission (SEC) will also announce the preliminary results of its investigation into the "flash drop" in U.S. stocks that day. The U.S. Securities and Exchange Commission is considering establishing a unified stock price limit system. The price limit system will have a six-month testing period, and each stock exchange will need to establish and operate a circuit breaker system before June 14, 2010.